shift into overdrive: tactics to succeed now - cdn...

SHIFT into Overdrive: Tactics to Succeed Now

The Few Who Choose and the Choices They Make

Name: _______________________________________

Date: ________________________________________

AcknowledgmentsThe author(s) gratefully acknowledge the assistance of the following individuals in the creation and delivery of this course:

Jennifer Boyd Tony DiCello Roger Higle Jay Papasan Jeff Ryder

Mike Brodie Dick Dillingham Dave Jenks Dean Poole Dawn Sroka

Mona Covey Rick Geha Gary Keller Gene Rivers

NoticesWhile Keller Williams Realty, Inc. (KWRI) has taken due care in the preparation of all course materials, we do not guarantee its accuracy now or in the future. KWRI makes no warranties either expressed or implied with regard to the information, programs presented in the course, or in this manual, and reserves the right to make changes from time to time.

This manual and any course it’s used as a part of may contain hypothetical exercises that are designed to help you understand how Keller Williams calculates profi t sharing contributions and distributions under the MORE System, how Keller Williams determines agents compensation under the Keller Williams Compensation System, and how other aspects of a Keller Williams Market Center’s fi nancial results are determined and evaluated. Any exercises are entirely hypothetical. They are not intended to enable you to determine how much money you are likely to make as a Keller Williams Licensee or to predict the amount or range of sales or profi ts your Market Center is likely to achieve. Keller Williams therefore cautions you not to assume that the results of the exercises bear any relation to the fi nancial performance you can expect as a Keller Williams Licensee and not to consider or rely on the results of the exercises in deciding whether to invest in a Keller Williams Market Center. If any part of this notice is unclear, please contact Keller Williams’ legal department.

Materials based on the Recruit-Select-Train-Manage-Motivate™ (RSTMM™) system and the Winning Through Selection™ course have been licensed to Keller Williams Realty, Inc. by Corporate Consulting. KWRI has the exclusive right within the real estate industry to market and present material from RSTMM™, Winning Through Selection™, and any derivatives owned by or created in cooperation with Corporate Consulting.

Material excerpted from The Millionaire Real Estate Agent and SHIFT: How Top Real Estate Agents Tackle Tough Times appears courtesy of The McGraw-Hill Companies. The Millionaire Real Estate Agent is copyright © 2003–2004 Rellek Publishing Partners LTD. SHIFT: How Top Real Estate Agents Tackle Tough Times is copyright © 2008 Rellek Publishing Partners LTD. All rights reserved.

Copyright notice

All other materials are copyright © 2009 Keller Williams Realty, Inc. All rights reserved.

Version 2 - Printed April 2009.

No part of this publication and its associated materials may be reproduced or transmitted in any form or by any means without the prior permission of Keller Williams Realty, Inc.

Table of Contents

It’s Your Choice ........................................................... 1

SHIFT Tactics #4 and #5—Lead Generation and Conversion ............................... 13

SHIFT Tactic #7—Price Ahead of the Market ......................................... 35

TOP PRODUCER ...................................................... 53

SHIFT Tactic #9—Create Urgency ......................................................... 55

SHIFT Tactic #11—The Market of the Moment ...................................... 71

Market of the Moment —Local Expert Panel ............ 83

TOP PRODUCER ...................................................... 85

Smart Money Management ....................................... 87

Your Action Steps Review ........................................... 99

Accountability ......................................................... 103

2009 Is “Do It Time” .............................................. 107

Agenda for the Day

SHIFT Tactic Topic

SHIFT Tactic #4 and #5 Lead Generation and Lead Conversion

SHIFT Toolkit Leveraging Technology

SHIFT Tactic #7 Price Ahead of the Market

SHIFT Tactic #9 Create Urgency

Lunch Break

SHIFT Tactic #11Market of the MomentPanel Discussion of the Local Market with Local Expert Panel

Smart Money

1

It’s Your Choice

In This Section:

Check Your Attitude—It’s Everything!

Get Real!

The Truth: Know It!

Focus on Income—Yours!

Are You Ready to Shift?

This Year Will Defi ne Your Career!

3

Check Your Attitude—It’s Everything!

“Whether you think you can or can’t, you’re right.”

Henry Ford

“We are what we decide we will be, and we do what we decide we will do. We become our choices.”

SHIFT: How Top Real Estate Agents Tackle Tough Times

“When a market shifts there is only one thing to do—shift with it. In truth, there are two shifts you must make. A mental shift and an action shift.”


“The challenge for individual agents? Fear, and how they will respond to it … some individuals, though they do feel the fear, also know they are in an equal opportunity, unequal reward business.”


“If you can shift gears—shifting both your thinking and your tactics—you will accelerate ahead of the rest.”


“In the era of extra, you get to keep your job; in the era of average, you get laid off.”

Gary Keller

“2009 is a time of pain or a time of gain.”

Gene Rivers, Tallahassee, Florida

5

Get Real!

How Do You Get Out of Being

Stuck in the Middle?

Complete Failure

Massive Success

Average

Most People

7

The Truth—Know It!

Unit Sales _____________________1.

Median Sales Price _____________________2.

Current Interest Rate __________________3.

Absorption rate data, by price range, showing trends for 4. last quarter.

What price ranges are selling best? • ____________________________________________________________________________________

What are sellers’ chances of selling in the best-• performing and worst-performing ranges? ____________________________________________________________________________________

Affordability ___________________________5.

Foreclosure Rate _____________________6.

Know the Truth about Your Market

9

Focus on Income—Yours!

Your GCI:

What is the possibility?

What it will take to make more money

5 more listings per year = 10 more sales per year• Every sold listing produces another sale• If average commission is $5,000 = $50,000!•

11

“Success never comes to the chosen few, but to the few who choose.”

Gary Keller, SHIFT

This Year Will Defi ne Your Career!

Are You Ready to Shift?

“You must persevere and fi nd a way to win.”

Gary Keller, SHIFT

13

Lead Generation and Conversion

SHIFT Tactics 4 and 5

In This Section:

Why Two Tactics Become One

Prospecting Based and Marketing Enhanced

It’s 9:00 a.m.—Lead Generation ONLY

The Six Core Competencies—the Two You Must Do

Your Lead Source Zone

Your Database: Focus on Advocates

Stay in Touch —33 Touch Accelerator

Lead Conversion Best Practices

Action Step

15

Why Two Tactics Become One

Increase in appointments = more $$

more appointment(s) per month

= more per year

x % that become closed contracts (NAR)

= closed units (___Listings, ____Buyers)

x average commission

= GCI

+ from the listings that produce buyer sales

Net result $______________ !

How does this number compare with your desired GCI?

“We can evade reality, but we cannot evade the

consequences of evading reality.”

Ayn Rand, Author

17

Prospecting Based and Marketing Enhanced

“Prospecting tends to uncover motivated leads faster and keeps you

more in control. Because prospecting puts you in immediate contact with people, you get

immediate feedback—and that’s what you want in a shifted market.”

Gary Keller, SHIFT

The automated 12 Direct, 8 x 8 and 33 Touch action plans in the Keller Williams version of TOP PRODUCER include a variety of print and

email marketing options, phone call reminders, and a robust contact record to store notes and other

important information.

19

It’s 9:00 a.m.—Lead Generation ONLY

Time Block – Three Things for Success

Time off/Vacation1.

Lead Generation Time2.

Planning Time3.

Three Things Done in Three Hours of Lead Generation Time

P _________________________________________________1.

T _________________________________________________2.

M _________________________________________________3.

Monday Tuesday Wednesday Thursday Friday Saturday Sunday 8:30 to 11:30am Lead Generation

8:30 to 11:30am Lead Generation



8:00 to 9:00am Planning 9:00 to 12:00am Lead Generation


















Time Blocking Three Things for Success

9 10 11

6

7 8

16 17 18

13

14

12

15

23 24 25

20

21

19

22

30

27

28

26

29

1 2 3 4 5

Notes31

Notes

Three-Day Family Vacation

21


Lead generate1. , capture and convert.

Present to buyers and get agreements.2.

Show buyers and market seller.3.

Write and negotiate contracts.4.

Coordinate the sale to closing.5.

Manage6. the money.

“What am I doing or spending money on that is

no longer effective since the market shifted?”

Gary Keller, SHIFT

23

Your Lead Source Zone

“Leads cost us money, so we really do need to hold each one accountable.”

Jana Caudill, Crown Point, Indiana

Identify Your Lead Source Zone

1. List 3. Focus2. Prioritize

Expired Listings 1. (14)Door Knocking (10)2. Calls to Sphere (7)3. “12 Direct” 4. Newsletter (7)Open Houses (5)5. Sign Calls (4)6. Client Parties (4)7. Website 8. Registration (4)FSBOs (2)9. Agent Referrals (2)10.

Door Knocking (10)Calls to sphere (7)Agent Referrals (2)“12 Direct” Newsletter (7)FSBOs (2)Open Houses (5)Expired Listings (14)Sign Calls (4)Website Registration (4)Client Parties (4)

1. List 3. Focus2. Prioritize

Expired Listings 1. (14)Door Knocking (10)2. Calls to Sphere (7)3. “12 Direct” 4. Newsletter (7)Open Houses (5)5. Sign Calls (4)6. Client Parties (4)7. Website 8. Registration (4)FSBOs (2)9. Agent Referrals (2)10.

25

Did you know it takes up to six times more energy to do business with a stranger vs. someone you already know? Build your Have Met database using the Keller Williams

version of TOP PRODUCER: LivePost and Market Snapshot to manage email, postcard, and letter marketing plans.

Your Database: Focus on Advocates

“Your number one job as a real estate agent is to get in the path of

motivated buyers and sellers.”Gary Keller, SHIFT

Who are your best advocates?

Advocates

27

Stay in Touch—33 Touch Accelerator

Look for the new SHIFT 33 Touch Accelerator action plan in the Keller Williams edition of TOP PRODUCER. Combined with Market Snapshot, this plan combines

two response-oriented emails and one phone call reminder each month. For postcard marketing, use

LivePost to print and mail directly from your computer.

Two Emails and One Call per MonthJa

n

Feb

Mar

Apr

May

Jun

Jul

Aug

Sep

Oct

Nov

Dec

Email 1st of Month

1 1 1 1 1 1 1 1 1 1 1 1

Email 15th of Month

1 1 1 1 1 1 1 1 1 1 1 1

Calls 1 1 1 1 1 1 1 1 1 1 1 1

33 T

ouch

12 D

irec

t

29

The Power of the 33 Touch

Contacts in Database

x Touches in a Year

= Touches

x _______% Contracts from Contacts

= Contracts

x Average Commission

= GCI

*Note: If you need a review of the 33 Touch action plan, learn more from The Millionaire Real Estate Agent and many of Keller Williams

University’s courses.

The Keller Williams version of TOP PRODUCER and Market Snapshot combine for a quick and easy automated

33 Touch program.

31

Lead Conversion Best Practices

Connect to establish motivation.1.

Deliver the right message for the market.2.

Stay in curiosity with questions.3.

Come from contribution—make offers 4. for immediate response.

Ask for the order and close.5.

33

What do you need to do now to shift your lead generation and conversion?

1.

2.

3.

Identify Your Critical Actions

Action Step

35

Price Ahead of the Market

SHIFT Tactic 7

In This Section:

Get Comfortable with the Truth

Three Truths About Sellers

The Window of Opportunity

Don’t Chase the Market Down

Be in the Market by Pricing Ahead of the Market

Market Data on Price and Units Sold

Pricing Best Practices

Action Step

37

Get Comfortable with the Truth

“A shift exposes and magnifi es the classic real

estate price confl ict that has always existed: the asking price a seller wants versus the price a

buyer is willing to pay.”Gary Keller, SHIFT

• Rethink the way you price.• Know that price shifts are happening fast.• Acknowledge the pent-up demand in most markets.

—5 million properties will sell in 2009.— 30-ish buyers may buy 5-6 more times

Home Prices in Thousands

The median home price declined by 9% in 2008.

1989

2007

2008

$199 K$219 K

20-year historical appreciation rate = 4%

39

Mortgage Rates 30-Year Fixed

Three Truths About SellersSellers must decide if they really ____________________1. ________________________________________________

Your job as an agent is to _________________________2. ________________________________________________

Once they see and hear the truth, ___________________3. ________________________________________________

“There is a gap between what a seller

thinks and the realistic price they can get. That gap is where your skills must work.”

Gary Keller, SHIFT

1989

2007

2008

10%

6.3%6%

Mortgage rates remained low for most of 2008 at around 6%. •

Mortgage rates ended the year at 5.1%, an all-time low since • Freddie Mac started its mortgage survey in 1971.

41

“The fi rst time someone sees a property is called the ‘window of opportunity’ because it is

the single best chance to create the impression that will sell the house. It’s the best marketing message a seller can

send: We’re priced right and serious to sell.”

Gary Keller, SHIFT

The Window of Opportunity

Price It Right—you’re in the market•

Price It Wrong—you’re out of business•

Local Factors Affecting Price

Price ReductionsKnow and communicate chances of selling.1. Know you’re on target.2. Drop x% every x days—contract it.3. Use a bracketing strategy.4. Deliver traffi c.5.

43

Don’t Chase the Market Down

“Not chasing the market means pricing your listings ahead of it.”

Gary Keller, SHIFT

SHIFT, p 146

45

Be in the Market by Pricing Ahead of the Market

47

Market Data on Price and Units Sold

“The best way to truly serve a seller in a shift

is to persuade them to outthink the other sellers they must compete against.”

Gary Keller, SHIFT

Major Market Study of Price Decline and Units Sold

Realtor Sales Median Sales Price

Statewide & Metropolitan Statistical Areas (MSAs)

Year End2008

Year End2007

%Chge

Year End2008

Year End2007

%Chge

STATEWIDE* 124,215 129,855 -4 $187,800 $234,300 -20

Fort Lauderdale 6,377 6,127 4 $278,000 $363,100 -23

Fort Myers-Cape Coral 8,217 5,753 43 $158,200 $254,700 -38

Fort Pierce-Port St. Lucie 4,332 3,376 28 $153,600 $226,100 -32

Gainesville 1,925 2,644 -27 $189,100 $210,400 -10

Jacksonville 9,866 12,341 -20 $180,600 $196,500 -8

Orlando 16,659 17,143 -3 $201,500 $248,900 -19

Panama City 1,054 1,364 -23 $191,400 $199,800 -4

Pensacola 3,208 4,188 -23 $155,800 $164,800 -5

Punta Gorda 2,530 2,436 4 $139,100 $186,900 -26

Sarasota-Bradenton 7,661 8,013 -4 $225,900 $286,300 -21

Tallahassee 2,099 2,779 24 $184,500 $200,900 -8

Tampa-St. Petersburg-Clearwater

23,615 24,310 -3 $169,500 $208,900 -19

West Palm Beach-Boca Raton

6,953 6,971 — $302,800 $369,400 -18

49

Study the market constantly.1.

Focus comps on actives.2.

Be a student of property3.

Keep presentation current.4.

Prequalify sellers.5.

Price ahead of market.6.

Secure price reductions in advance.7.

Pricing Best Practices

Buyers can use Market Snapshot to keep current with home activity in specifi c neighborhoods. Community and school data is also included to help buyers research

and compare multiple neighborhoods.

51


What do you need to do now to revamp your pricing strategies?

1.

2.

3.

Action Step

53

TOP PRODUCER

Presenter(s):

___________________________________________________1.

___________________________________________________2.

55

Create Urgency

SHIFT Tactic 9

In This Section:

A Real Lead is a Montivated Lead

Qualify—Able, Ready, and Willing

Energize Buyer Urgency

Overcome Reluctance

Timing the Market Doesn’t Work

The Safe Zone

Why Wait—The Cost of Waiting to Buy

Affordability

First-Time Home Buyers

Seller Urgency

Action Step

57

A Real Lead is … a Motivated Lead

Never lose another lead! The Leads Manager portion of the Keller Williams version of TOP

PRODUCER keeps leads at your fi ngertips and regularly reminds you when to followup.

“A market shift simply causes a

smaller number of buyers and sellers to have the ability, readiness or willingness …this is why you must now ramp up your

lead generation, because there are less of the motivated to fi nd.”

Gary Keller, SHIFT

“A buyers’ market should be just that—a buyers’ market … You must help

buyers rediscover a sense of urgency.”

Gary Keller, SHIFT

59

Energize Buyer Urgency

Be the local economist for both buyers and sellers.1.

Help them see their Big Why.2.

Address any reluctance.3.

Qualify—Able, Ready, and Willing

Overcome Reluctance

Why Wait—hazards of timing the market1.

Trade Up—opportunity of a down market2.

Less Is More—narrow the fi eld3.

Find a Best Buy—get while the gettin’s good4.

61

Timing the Market Doesn’t Work

63

The Safe Zone

“People who buy in a buyers’ market are

the smart ones. They’re buying in the safe zone and living in the area of certainty.”

Gary Keller, SHIFT

65

Why Wait—The Cost of Waiting to Buy

The Keller Williams version of TOP PRODUCER includes dozens of new SHIFT-inspired postcards, email, and letters including “best buy,” “trade up,”

and “Why wait” themes. Each postcard uses LivePost to save time and money.

67

First-Time Home Buyers

First-time home buyers are now more than • ________% of all buyers.

They have 8,000 reasons to buy now.•

Use the resource • Your First Home.

Affordability

Seller Urgency

Truth:

Truth:

Truth:

69


What do you need to do now to create urgency with buyers and sellers?

1.

2.

3.

Action Step

71

The Market of the Moment

SHIFT Tactic 11

In This Section:

Three Markets of the Moment

The Opportunity Is Never Over

Get Educated—Latest Distressed Market Tools

Your Market of the Moment Decision

Focus: The Buyer Side of Distressed Properties

Focus: Short Sales Opportunity

Focus: REO Listing Opportunity

Action Step

73

Three Markets of the Moment

1. Distressed PropertiesForeclosures•

Bargain hunters and investors seeking to buy value –

Short Sales • Individuals or families trying to avoid foreclosure –

REOs• Financial institutions with an above-average number of –foreclosures to sell

2. First-time Home Buyers

3. Investors

“Don’t hesitate—there is a defi nite advantage

that goes to those who move fi rst. The sooner you get involved, the better. Whether you completely dive into these opportunities or not,

they are worth studying and mastering.”Gary Keller, SHIFT

75

The Opportunity Is Never Over

It’s Your Choice

Learn as much as possible about these markets and • what it takes to “play” in them.

Decide if this business is for you.•

Specialize in one of the three.•

Know where to get help and resources.•

Look ahead to the next shift.•

An increasing proportion of today’s residential real estate market consists of distressed properties such as REO and short sales—50 percent nationwide and up to 90 percent in some areas of Nevada and California. (source: Campbell Communications 2009)

In some markets, distressed properties may be from 10–90 percent of your opportunity.

How Big Is Your Opportunity?

77

Get Educated—Latest Distressed Market Tools

KW Foreclosure Search Feature•

KWConnect•

Agent Mountain•

KW Distressed Property Network•

KWU Distressed Property Boot Camp •

(June 2009)

Mega Camp•

Masterminds•

Family Reunion•

MAPS Short Sale Coaching•

“Seven-Figure REO Agent” Course•

Your Market of the Moment Decision

“A market shift can be a moment of truth for your career. You will

be faced with the decision to go after homes in default, foreclosure, and REOs … and shouldn’t be

a spur-of-the-moment decision.”Gary Keller, SHIFT

79

Focus: The Buyer Side of Distressed Properties

Focus: Short Sales Opportunity

Focus: REO Listing Opportunity

81


What do you need to do now to make the most of the market of the moment?

1.

2.

3.

Action Step

83

Market of the Moment—

Local Expert Panel

Local Experts:

___________________________________________________1.

___________________________________________________2.

___________________________________________________3.

___________________________________________________4.

___________________________________________________5.

___________________________________________________6.

85

TOP PRODUCER

Presenter(s):

___________________________________________________1.

___________________________________________________2.

87

Smart Money Management

In This Section:


Overcome Your Discomfort Now—Know Your Numbers

Know Where Your Profi t Comes From

Invest Wisely—Know Where Your Money Goes

Action Step

89

Lead generate, capture, and convert.1.

Present to buyers and get agreements.2.

Show buyers and market seller.3.

Write and negotiate contracts.4.

Coordinate the sale to closing.5.

Manage the money.6.


“I’ve come to think of money as being about having choices.”

Gary Keller

Overcome Your Discomfort Now—Know Your Numbers

Think “money matters.”•

Fill out a standard bank loan application on • yourself every month.

Create a budget that matches your revenue.•

Check your budget weekly/monthly.•

91

Know Where Your Profi t Comes From

Find your profi t and protect it!•

Use • The Millionaire Real Estate Agent Chart of Accounts.

Generate revenue by generating leads.•

Know these numbers

GCI ______________•

Unit sales ______________•

Median sales price ______________•

Conversion ratios ______________•

Leads to appointment ______________ –

Appointments to signed agreement _______ –

Agreements to contract ______________ –

Contracts to closed units ______________ –

The Keller Williams version of TOP PRODUCER helps track important numbers, such as leads per source

and closings per source, as well as tracking team member activities including calls and appointments.

93

“No matter the market you always follow the

philosophy of ‘lead with revenue.’”Gary Keller, SHIFT

Invest Wisely—Know Where Your Money Goes

Every expense is an investment in your business.•

Track expenses—every expense should be for a • specifi c and measureable result.

95

Know Your Net Worth

Personal Balance Sheet

Jan. 1, Last Year

Jan. 1, This Year

Annual % Increase

Current Total

YTD % Increase

AssetsRetirement Accounts $ $ % $ %

Equity Investments $ $ % $ %

Businesses Private $ $ % $ %

Businesses Public $ $ % $ %

Stocks $ $ % $ %

Bonds $ $ % $ %

Annuities $ $ % $ %

Total Equity Investments $ $ % $ %

Cash/Investments $ $ % $ %

Insurance $ $ % $ %

Collectibles $ $ % $ %

Personal Property $ $ % $ %

Real Estate Personal $ $ % $ %

Real Estate Investments $ $ % $ %

Notes Receivable $ $ % $ %

Other Assets $ $ % $ %

Total Assets $ $ % $ %

LiabilitiesCar Loans $ $ % $ %

Credit Card Debt $ $ % $ %

Mortgage Debt $ $ % $ %

School Loans $ $ % $ %

Other Debt $ $ % $ %

Total Liabilities $ $ % $ %

Net WorthAnnual Cash Flow (earned) $ $ % $ %

Annual Cash Flow (unearned) $ $ % $ %

From The Millionaire Real Estate Investor

97


What do you need to do now to manage your money smartly?

1.

2.

3.

Action Step

99

Your Action Steps

Review

In This Section:

Review Your Action Steps and Prioritize

Choose Your #1

101

Review Your Action Steps and Prioritize

1.

2.

3.

4.

5.

6.

Choose Your #1

Choose your #1 priority action.•

Share with a neighbor.•

Shout out.•

Focus Action Step

First Priority

Master the fi rst step before adding another!

103

Accountability

In This Section:

Accountability

MAPS Coaching Programs

105

MAPS Coaching Programs

Fast Track: _____________________________________________

Power Play: ____________________________________________

Breakthrough: __________________________________________

Mastery: _______________________________________________

“For whatever you want, set up accountability for it.”

Gary Keller, SHIFT

Accountability

Personal accountability with the 4-1-11.

Partner or group accountability2.

Ultimate accountability—Coaching3.

I do/ I will

107

2009 Is “Do It Time”

In This Section:

1. Choose Your Direction

2. Know Your Numbers

3. Learn the Truth … Tell the Truth

4. Be Accountable

109

1. Choose Your Direction

2. Know Your Numbers

3. Learn the Truth … Tell the Truth

4. Be Accountable

2009 Is “Do It Time”

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